FundOS – Autonomous smart investment contracts network

FundOS is a blockchain based network which hosts “Smart Investment Contracts”, executes trades in a smart and automated manner, and connects between investors and investment managers. FundOS plans for a token pre-sale starting on October 9th.

The Motivation

The problem that FundOS addresses is that non-professional crypto investors don’t have enough comprehensive data, analytical tools and maturity. According to their documentation, “an ordinary individual finds it more difficult to make investment decisions that are suitable for market changes”. On the other hand, the team claims there are no independent third-party digital asset custodians in the field of blockchain digital assets.

The Solution

The goal of FundOS is to close the gap between investors and investment managers. This will be done by providing a decentralized platform that enables investment managers to initiate their own smart investment contracts (equivalent to creating their own “investments platforms”). Each smart investment contract will manage all of the currencies raised, perform around the clock objective trades using smart AI, present analytical data and automatically execute desired accounting operations beforehand. Internal fees, such as the investment manager’s fee and payments will be under the contract’s jurisdiction as well.

In addition to collecting funds from investors, professional investors can utilize the system’s unified quantitative trading interface in order to develop their investment strategies and to optimize profits.

As the system is decentralized, investment managers can’t control or access the funds held by the smart investment contract. They only control the investment strategy. A contract will also calculate its own portfolio’s return rates and will know when to sell according to a pre-defined return percentage (or stop the loss when things go in the opposite direction). Another planned cool feature, will allow initiators (investment managers) to set alarms for pre-defined benchmarks, and receive news which is related to the contract’s investments.

As each contract’s performance is tracked on the blockchain, investors can transparently review the performance of each manager, and decide for themselves what is best for them.

All of the capabilities described above, will enjoy the inherited benefits of the blockchain technology, by having a highly secure and encrypted system which is transparent to all concerned and by resolving trust issues between the parties involved.

A very interesting aspect of each smart contract, is the fact that only its initiator (the investment manager) knows the secrets and rules of it, outsiders can only see data on returns. This structure opens a market for trading strategies as well. We were interested to hear about this, from the team at FundOS. Cherry Kim, FundOS’s marketing manager, had reported to us that “The strategy is like a black box. Others cannot see the “secret strategy”, but can see the historical rate of return of the strategy. The strategy is packaged within the interface but shows the historical rate of return to the market. The fund manager can trade the strategy for FOS tokens.”

Working with Exchanges

The system will offer investment managers a data interface that connects to all major global cryptocurrency exchanges, a bank of strategies and a unified transaction execution interface. The project’s whitepaper explains that “Professional investors can develop transaction strategies based on other people’s transaction strategy data, or open their own strategy to the public with commission, as well as sharing reasonable returns.”

Infrastructure

The blockchain for FundOS’s network, is a self-developed solution which utilizes the Hyperledger Fabric framework for blockchain solutions development. The consensus mechanism used is the PBFT algorithm.

FundOS will provide a GRPC API for upper-level applications and an API encapsulated SDK. The SDK will initially include NodeJS and Python versions.

The Token

FundOS’s abbreviation and token name, is FOS, its main purpose is to serve as the “oil” that keeps the entire blockchain running. It serves as the medium of value for the system, and will complete all fund investments, transactions, fee payments and user fees on transaction strategies.

The smallest indivisible unit for the FOS token is called fosu, which is satisfying 1FOS = 10 ^ 9 fosu. Which is the same as 1 fosu equals 0.000000001 FOS. (one Satoshi is satisfying 1BTC = 10 ^ 8 satoshi). The whitepaper clearly states that the FOS token does not represent any real-world assets or rights, such as company equity or voting rights.

As the use of FOS will increase, its value is expected to grow. The whitepaper provides some use-cases for example, such as payments, settlements, currency exchange, finance and asset reallocation.

Software

FundOS will develop multi-platform supporting software (it will support Windows, macOS, iOS, Android and a web application). For investors, the software will allow users to invest in investment contracts, view investment managers rankings, browse through active contracts & view their rate of return and will include the FOS wallet.

For investment managers, a full-featured PC client application will act as the interface for writing new smart investment contracts while running tests and performing other operations. Other limited options will be available on the mobile app, such as publishing existing contracts.

Team

The team behind FOS consists of experienced personnel who have mainly worked in the software and trading industries and gained vast knowledge about the blockchain space.

All three founders, including Jerry Young (CEO) Daniel Fu (CTO) and Richard Loo (COO) hold an MSc degree in Computer Science, and are members of the Global Entrepreneurial Leaders Club.

Roadmap

Current development plan includes deployment of a feasible test environment in December 2017, a feasible test network in January 2018 and an online wallet in February 2018.

The full product release is expected to occur in October 2018.

Competition

Enigma

Enigma is a data marketplace protocol, the team behind this project has also built Catalyst, which is the first application running on this protocol. It allows users to:

Share and curate data and build investment strategies.

Provide data in exchange for tokens

Spend tokens on subscribing to data sources

Invest in winning strategies

Develop their own trading algorithms

Build and use research tools

Enigma looks like a strong competitor of FundOS, but puts more focus on data and learning, rather than creating smart investments contracts which connects between investors and investment managers. We have covered Enigma’s project in the past in an ICO evaluation on CryptoPotato.

eToro

eToro is a well established company which provides a very user-friendly interface for investing in stocks, ETFs, indices, commodities, fiat currencies and cryptocurrencies (currently Bitcoin, Dash, Ethereum, Ethereum Classic, Litecoin and Ripple). They offer the ability to “copy” various investors with visible returns statistics which are divided by risk levels. eToro introduced an additional feature called “CopyFunds” which are funds created by professionals and top investors.

ICONOMI

ICONOMI has been mentioned in FundOS’s whitepaper as a solution for non-professional crypto investors. It was used an example of a similar service which is not independent. ICONOMI provides a platform for digital assets management, aiming to assist both noobs and expert in one place. Their main core feature is called “Digital Assets Array”, which is basically the equivalent of FOS’s Smart Investment Contract.

Melon

Melon is creating decentralized blockchain software solutions to help users to set up, manage and invest in digital assets by utilizing the Melon Protocol. It is currently built on the Ethereum blockchain, but is planned to be available on other blockchain networks in the future.

Blackmoon Crypto

Blackmoon brands itself as the bridge between the crypto universe and the traditional investing market by having one interface that supports both fiat and cryptocurrency investments. It aims to use the advantages of both spaces in order to provide the best trading tools.

Pros and Cons

Pros:

Investment managers’ reputations are transparent, they cannot be promoted or manipulated.

Official live version is due to be launched in October 2018, this relatively long timescale (for crypto ventures!) gives the team enough time to develop a solid platform.

Independence and autonomy of smart investment contracts, which gives transparency, security and reliability.

Cons:

Many direct competitors, from the aspect of creating smart AI for trading and also in the aspect of sharing investment data and creating funds as well.

As regulation is settled and more mainstream exposure to cryptos occurs, more traditional experienced investments organizations might be attracted to the crypto space too.

The advisory board doesn’t look impressive.

Pre-Sale Details and more info

Total token supply: 1,000,000,000 FOS

Pre-sale allocation: 150,000,000 FOS

Pre-sale minimum target: 5,000 ETH

Pre-sale hard cap: 20,000 ETH

Price: 1 ETH = 7500 FOS

Participants can sign-up in advance, and receive a “reservation bonus” of 20% in tokens received. Participants who haven’t registered in advance, will enjoy a 15% bonus in tokens received. Pre-sale participants can pay either with Bitcoin or Ether.

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About the Author

Yuval has been on several customer facing and management positions in software companies and projects. An industrial engineer with a passion for business, technology, and innovation. Loves to create while having fun!

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